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A real estate investment has the following expected cash flows: Year 0 Year 1 Year 2 Year 3 Year 4 Cashflow 10,000 25,000 50,000 35,000

A real estate investment has the following expected cash flows:

Year 0

Year 1

Year 2

Year 3

Year 4

Cashflow

10,000

25,000

50,000

35,000

The discount rate is 8%. What is the investments value 4 years from now?

a. $122,876

b. $113,345

c. $132,152

d. $103,700

e. $130,757

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